The 16-counter Malawi Stock Exchange (MSE) maintained bullish performance in the first quarter (Q1) of 2025 pushed by good performance in the financial sector to achieve a 69.5 percent return on investment.
This shows that in Q1, the market was in a strong position compared to same period last year when it registered a 2.96 percent return on investment, according to market data.
MSE market data shows that stellar performance this quarter resulted in a number of listed companies gaining in terms of market capitalisation, raising the MSE overall market capitalisation by 69.8 percent to K15.8 trillion from K9.3 trillion during the same period last year.
In the period under review, there were huge share price gains with FMB Capital Holdings plc share price jumping by 149 percent, FDH bank plc gained 112.6 percent, NBS Bank plc increased by 100 percent, Nico Holdings plc by 85 percent and National Bank of Malawi plc by 79 percent.
The gains in five counters were enough to offset share price losses in TNM plc and Icon Properties during the period under review.
Market analysts have since described the market performance as strong while noting the sharp rise in some share prices, especially those from financial sector.
Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said yesterday that “a rising Malawi All Share Index generally indicates a strong stock market, reflecting investor confidence, economic growth and positive earnings reports.
He said: “However, it does not guarantee that all stocks will perform well as some may be overvalued, leading to potential corrections.
“Looking ahead, stocks where dividends are declared may attract more investors seeking stable returns, reinforcing market confidence.”
Stock market investor Joe Maere said the soaring share prices are key to grow investors’ money on the local shares market.
He said the good performance of the market is an indicator that MSE is a reliable platform for raising cheap capital.
“It is clear that performance of companies will be even better as the economy moves into peak period between April and September having posted good results in January to March lean period,” said Maere.
Minority Shareholders Association of Listed Companies secretary general Frank Harawa described the first three months as exciting as investors have realised capital gains due to increasing share values.
“We have seen one of the best quarterly performances and we believe with companies’ financial results getting out and better dividends being declared, some shares will remain attractive for the time being triggering further price increases before the prices re-correct themselves later in the coming months,” he said.
MSE chief executive officer John Kamanga said in an earlier interview that the market has exhibited resilience and strong performance in recent years.
He further said these achievements highlight the strength, resilience and potential of the country’s capital market as a platform for creating sustainable wealth and fostering economic growth.
Standard Bank plc share price at K7 941 remains the most valued followed by National Bank of Malawi plc at K6 200.10 per share. Other companies with notable share prices are Press Corporation plc at K2 875.01, Old Mutual Malawi at K1 950.03 and Illovo Sugar (Malawi) plc at K1 791.64.
